What specific acknowledgement is required in the confidentiality, non-solicitation, and non-competition agreement for Focus Cfo Support Resources?

According to the 2025 Focus Cfo Franchise Disclosure Document, if a franchisee hires Support Resources, they must ensure these individuals sign a confidentiality, non-solicitation, and non-competition agreement. This agreement requires the Support Resource to acknowledge that they are bound to the same covenants as the Equity Owner of the franchise, as outlined in the Franchise Agreement.

This requirement means that Support Resources are subject to similar restrictions as the franchisee regarding confidential information, solicitation of clients or employees, and competition with Focus Cfo, both during the term of the agreement and for a specified period after termination. The franchisee is responsible for providing a copy of the executed agreement to Focus Cfo within ten business days of hiring the Support Resource.

This policy protects Focus Cfo's interests by ensuring that anyone working on behalf of the franchisee is bound by the same confidentiality and non-compete obligations as the franchisee. It also reinforces that Focus Cfo is not the employer of the Support Resources, and these individuals are employees of the franchisee, having no employment relationship with the franchisor. This arrangement helps to shield Focus Cfo from potential liabilities related to the Support Resources' actions.

Prospective franchisees should carefully review the terms of the confidentiality, non-solicitation, and non-competition agreement to fully understand the obligations that will be imposed on their Support Resources. They should also consult with legal counsel to ensure that the agreement complies with all applicable laws and regulations.